All Forum Posts by: Matthew Rembish

I like to sub out as much as I possibly can and then if the budget runs tighter than I planned for, I’ll put in some sweat equity.

@Michael Craig Hey Michael, thanks for the feedback. I’ve thought about going this route and if we were to refinance and pull some of the money out, I think 50% would be the most amount of equity we’d pull out. I like the idea of doing that, but getting qualified to do that after being recently self employed might prove to be difficult. It’s certainly something I’ve considered though. Thanks!

@Alexander Flores Hey, look who joined the party. Thanks for the input! Amazingly enough, this $80,000 property only needs about $10,000 in renovation costs so it’s actually the one property that sparked this idea. And you’re right on the money with regards to tax and insurance costs. If we could spend as much time as we needed finding at least one property a year that fit this criteria, I think it would definitely be worth the wait. 

@Lynnette E. Thanks, Lynnette! That's actually exactly what I'm planning on doing. I want to find properties for $90k or less that I can rehab for $10k or less and rent out. Every dime would be reinvested into another property each year and will continue the process for the next 10! I'm glad someone is on the same page as I thought I was missing something. I'm sure my ROI won't be as high as someone pulling their money back out to do another deal but I think I'm a lot less exposed this way...

@Aaron K. Thanks, Aaron. I actually just recently found something that fits that criteria which sparked this thought. That $1,000 would basically reflect the total monthly income minus taxes. It would however include monies set aside for vacancy, repairs, cap ex, etc.

I've been flipping properties for a few years now and have recently taken the plunge to do so full time. As much as I like it, I do miss the constant income stream and was looking to start purchasing some rental properties. Being recently self-employed, I know that it's going to be hard to get approved for a conventional mortgage so I started looking at cheaper properties to buy all-cash. After thinking about it for a bit, I realized that if I could purchase one rental property each year for between $80,000 and $100,000, I could potentially add $1,000 of cash flow each month for every year that I bought a property. In other words, if I completely paid cash for one of these properties each year for 10 years, I would be making around $10,000 a month in cash flow. Now, being as young of an investor as I am, I know that I'm probably not thinking of something. I know I won't be getting the "debt service pay-down" benefit but are there any other major pitfalls to employing this plan? I'm also missing out on tax benefits too, right? 

Any feedback is very much appreciated. Thanks!

@Scott Williams Thanks, Scott. I haven’t heard of that one either but the less expensive, the better. I’ll give it a look!

@Timothy W. I’ve never heard of them but I’ll be sure to check them out. Thanks!

@Account Closed That’s really interesting, I just heard a wholesaler talking about that the other day. I also heard Call Text is a great option as well. Thanks again!

@Bob Okenwa Thanks for the input, Bob. I’ve definitely heard that being a major advantage from a few investors.